Download Economic Terms - Cobb Learning

Middle East/Africa
Economic Terms from the
th
7 grade standards
Take notes! Quiz to come! 
Distribution Economy
 A distribution economy is dependent
completely upon one resource for their
finances (AKA specialization)
 An example of a distribution economy is
any Middle Eastern country that relies
upon oil production
Market Economy
 A country which practices free enterprise
with no government involvement
 An example of a market economy could be
a small scale community or village that
uses bazaars and bartering
Mixed Economy
 An economic system in which some
businesses are government run and some
are free enterprise.
 The U.S. is an example of a mixed
economy
Voluntary Trade
 Voluntarily purchasing something where
both groups are financially or mutually
benefited
 One group volunteers to sell it, another
volunteers to buy it
 Ex: Persian Rugs in Iran, Apricots in
Turkey
Import
 Goods brought into one country from
another through trade or sale
 We import oil from the Middle East
Export
Goods and services traded with or sold
to other countries
Saudi Arabia exports oil to the rest of
the world
GDP
 Total value of all goods and services
produced in a country in a given time
period
 Example: In 2007, Jordan calculated the
value of its goods and services at 16.01
billion dollars.
Trade Barriers
 Any law or practice that a government
uses to limit free trade between
countries…it could be a political or military
obstacle to trade
 Examples: chokepoints, military
blockades, Iranian sanctions, Israel and
the Muslim World
Currency
 Something in movement as a standard of
trade (usually the money used for trade)
Exchange
To give something away and get
something back as a substitute (the
process of trade)
Human Capital
 This is knowledge and skills that allow
workers to produce goods and services
and earn an income.
 Example: A company that invests in
training for its workers.
Traditional Economy
 Subsistence-level (survival, agriculturalbased) economy
 Example: much of Sub-Saharan Africa…
any country or community where food is
raised for survival rather than INCOME
Commodity
 A valuable or useful economic good
 Example: oil is a commodity for the
countries bordering the Persian Gulf in the
Middle East along with minerals mined in
North Africa
Entrepreneur
 Someone who organizes, manages, and
assumes business risks
 Ismail Pasha (Suez Canal) is an example
Command Economy
 An economic system in which the
government decides what goods will be
produced, how they will be produced, and
how they will be distributed
 The strict Islamic law present in Saudi
Arabia borders on a command economy,
but true examples include North Korea
and Cuba
OPEC
 The Organization of Petroleum Exporting
Countries works to set a fair price for oil
traded throughout the world.
Supply & Demand
 When you have a lot of something the
price goes down and when you have little
of it the price goes up!
 Example: When Iraq invaded Kuwait and
began destroying their oil pipelines, the
price of oil went up because the supply
was lower but the demand remained high.